Add LM Studio support to the Assistant (#23097)

#### Release Notes:

- Added support for [LM Studio](https://lmstudio.ai/) to the Assistant.

#### Quick demo:


https://github.com/user-attachments/assets/af58fc13-1abc-4898-9747-3511016da86a

#### Future enhancements:
- wire up tool calling (new in [LM Studio
0.3.6](https://lmstudio.ai/blog/lmstudio-v0.3.6))

---------

Co-authored-by: Marshall Bowers <elliott.codes@gmail.com>

docs/src/assistant/assistant.md

@@ -8,7 +8,7 @@ This section covers various aspects of the Assistant:
 
 - [Inline Assistant](./inline-assistant.md): Discover how to use the Assistant to power inline transformations directly within your code editor and terminal.
 
-- [Providers & Configuration](./configuration.md): Configure the Assistant, and set up different language model providers like Anthropic, OpenAI, Ollama, Google Gemini, and GitHub Copilot Chat.
+- [Providers & Configuration](./configuration.md): Configure the Assistant, and set up different language model providers like Anthropic, OpenAI, Ollama, LM Studio, Google Gemini, and GitHub Copilot Chat.
 
 - [Introducing Contexts](./contexts.md): Learn about contexts (similar to conversations), and learn how they power your interactions between you, your project, and the assistant/model.
 

docs/src/assistant/configuration.md

@@ -10,6 +10,7 @@ The following providers are supported:
 - [Google AI](#google-ai) [^1]
 - [Ollama](#ollama)
 - [OpenAI](#openai)
+- [LM Studio](#lmstudio)
 
 To configure different providers, run `assistant: show configuration` in the command palette, or click on the hamburger menu at the top-right of the assistant panel and select "Configure".
 
@@ -236,6 +237,25 @@ Example configuration for using X.ai Grok with Zed:
 }
 ```
 
+### LM Studio {#lmstudio}
+
+1. Download and install the latest version of LM Studio from https://lmstudio.ai/download
+2. In the app press ⌘/Ctrl + Shift + M and download at least one model, e.g. qwen2.5-coder-7b
+
+   You can also get models via the LM Studio CLI:
+
+   ```sh
+   lms get qwen2.5-coder-7b
+   ```
+
+3. Make sure the LM Studio API server by running:
+
+   ```sh
+   lms server start
+   ```
+
+Tip: Set [LM Studio as a login item](https://lmstudio.ai/docs/advanced/headless#run-the-llm-service-on-machine-login) to automate running the LM Studio server.
+
 #### Custom endpoints {#custom-endpoint}
 
 You can use a custom API endpoint for different providers, as long as it's compatible with the providers API structure.